What These 8 Wise Quotes Can Teach Us About Property Investment

Sometimes when I need guidance I like to look through inspirational quotes made by some of the world’s greatest minds past and present.

When it comes to investing, there is a whole lot of wise words spoken about stocks and shares and money.

There is not too much around about property investing.

The following famous quotes about investment can be easily adapted to getting the most out of property investment.

1.  “It’s far better to buy a wonderful property at a fair price than a fair property at a wonderful price.”

Ok I have changed some of the wording, but Warren Buffett’s original quote on investing in a company can equally apply to investing in property.  It is always better to invest in a wonderful property at a good price or, even better, at a discount than look for a property that requires huge investment even if the price looks good.

2. “An investment in knowledge pays the best interest.”

Benjamin Franklin’s quote can apply to all areas of investment. Researching your chosen market should be the most important part of your property investment process. It is so easy to take a wrong turn when you invest property in an area you might not be familiar with.

Use all the help that is available to guide your investment decisions.

3. “How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.”

I like this quote from businessman Robert G. Allen.  It says a lot about playing it safe. Yes you can feel secure having all your money in a savings account but what happens when that wealth is steadily eroded by that silent killer – inflation?

The banks will add a much more generous interest rate on what you borrow from them rather than the money you give them for safe keeping.

4. “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”

Robert Kiyosaki hits the nail on the head on making sound investment choices. You can make a lot of money from investing in property, however you need to make sure that the costs of owning that property don’t eat into the money you make.

You will need to focus just as much on the long term capital gain and making that investment work hard so that you’ll have something left to hand over to your love ones.

5. “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”

Perhaps Paul  Samuelson had property investment in mind when he came up with this wise quote. Yes investing to make an instant high return can be thrilling, just as much as having a good night in the casino.

Property investment  is different, it is all about the money you make in the long term from an appreciating asset and the rent profits made from your tenants.

6. “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.”

To understand property markets, you need to understand cycles. Peter Lynch understood that all markets move in cycles and property is no different.

Price corrections and property crashes can and do occur, however to get the best out of property investment, you need to be prepared to look long term. That way you will stay immune to any market corrections in between and benefit from the up cycles.

7. “Know what you own, and know why you own it.”

Another quote from Peter Lynch which should apply to any property investment decision you make. If you know the reason why you own the property , i.e. that you are investing for a pension or looking for long term capital growth then this will help you set goals.

8. Well, real estate is always good, as far as I’m concerned.

Donald Trump knows a thing or two about real estate, this is how he made his fortune. Real estate is always good because you can rely on a guaranteed return on investment in the long term unlike stocks and shares where you can sometimes lose the shirt from your back.

What famous quotes have inspired your investment decisions? Please leave your comments below:

Kind regards

Loxley McKenzie
Managing Director

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